Spain inflation jumps to 3.5% in July as energy costs surge

The break from three months of stability at 3.2% complicates the ECB's easing path, with core inflation also ticking higher on fuel and electricity.

By Handelsavisen Newsroom · Automated 2026-07-30 07:37 UTC · 1 min read Last updated: 2026-07-30 09:09 UTC

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Spain’s consumer price index accelerated to 3.5% year-on-year in July, up from 3.2% in June, driven by a sharp rise in fuel and electricity prices.

The National Statistics Institute (INE) released the flash estimate on Thursday, marking a clear break from the stability seen in recent months.

2% for three consecutive months, extending a streak of four months above the 3% mark.

The uptick in headline inflation was accompanied by a 0.1 percentage point rise in core inflation, suggesting underlying price pressures are not yet fully contained.

This development adds to the complexity of the European Central Bank’s monetary policy calculus, as policymakers weigh persistent energy-driven volatility against broader disinflation trends across the eurozone.

Spain’s CPI had remained unchanged at 3.2% for three consecutive months, extending a streak of four months above the 3% mark.

The July increase of three-tenths of a point highlights the sensitivity of the Spanish economy to energy market fluctuations, which continue to exert upward pressure on household costs and business margins.